Will Muhurat trading 2025 ring in gains for investors? What 10-year historical trend signals

Muhurat trading 2025: Muhurat trading, a feature unique to the Indian stock market, will take place on Tuesday, October 21, this year. This special one-hour trading session of the Indian stock market is held once every year on the occasion of Diwali.

As Diwali marks the onset of the new Hindu calendar year, or a Samvat, it is considered auspicious to do token trading on this day. Investors usually engage in this session to buy stocks for the long term as part of tradition.

How does market perform on Muhurat trading?

But does Muhurat trading really promise returns for investors? According to the 10-year history, the benchmark index Nifty 50 has risen in eight sessions and lost in only two – signalling a positive trend during Muhurat trading days.

It was seven years ago, in 2017, that the Nifty 50 last delivered negative returns of 0.63%. Since then, the market trend has been a positive one. The average returns eked out by the index have been of 0.35%, with the highest return delivered in 2022, when the Indian stock market jumped nearly a per cent by 0.87%.

Trading volumes during Muhurat trading are generally low. However, all the trades executed during the Diwali Muhurat trading session result in settlement obligations for investors.

Diwali cheer on Dalal Street: Nifty gains 3% in 4 days

The signs of Diwali cheer are clearly visible in the Indian stock market in the run-up to the festival, with the Nifty 50 having risen for the fourth straight day today.

In the last four sessions (including today), Nifty 50 has added over 750 points or risen 3.09%.

According to Vishnu Kant Upadhyay, AVP -Research & Advisory, Master Capital Services, with a blend of supportive technical indicators and improving fundamentals, overall market sentiment remains optimistic.

What is the outlook for Samvat 2082?

As we usher into a new Samvat 2082, India stands at a defining point in its economic and market journey, marked by reform momentum, macro resilience, and a maturing domestic investor base, said Motilal Oswal Financial Services in a note recently.

Amisha Vora, Chairperson and Managing Director, PL Capital, said that as we usher in Samvat 2082, optimism is gradually returning to Indian markets.

"The year gone by tested investor patience, with India lagging global peers despite strong domestic fundamentals. However, the stage now appears set for an earnings-led recovery. Growth momentum remains intact, supported by structural reforms, the rollout of GST 2.0, income tax relief, and an accommodative policy stance that is easing liquidity conditions. India’s GDP is projected to expand by around 6.8% in FY26 — among the fastest globally — underscoring the country’s resilient growth narrative. Valuations are reasonable, earnings downgrades have largely bottomed out, and domestic inflows continue to demonstrate remarkable strength even as foreign investors remain cautious," Vohra opines.

This, according to her, creates a favourable setup for Indian equities to outperform in the new Samvat.

According to Kant, the broader outlook for the Nifty 50 remains constructive, and the “buy-on-dips” strategy is likely to prevail. "Any corrective move towards the 25000–24800 zone could offer an opportunity to initiate fresh long positions, with initial upside targets placed around 25650–25700 levels," he opined.

Disclaimer: This story is for educational purposes only. The views and recommendations expressed are those of individual analysts or broking firms, not Mint. We advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and circumstances may vary.